BOUTIQUE HOTELS

  1. What are the operational challenges associated with developing new boutique hotels?

  • Design and Architecture – the boutique hotel must be able to create its own “personality” or “identity” with various themes different from that of chain hotels and other boutique hotels.  The goal is to create a unique, intimate, and stylish environment that makes every customer’s stay a distinctive experience that would make him/her want to come back.
  • Selecting Target Market – the target market of the boutique hotel must be those who can highly relate and appreciate its unique features and/or environment.
  • Superior Customer Service – to further differentiate the boutique hotel from competition, it has to provide its customers with excellent customer service.  Mostly preferred for this type of operations is personalized service which would really identify itself from other hotels.  For this to materialize, the hotel as an organization has to develop the culture of excellence and quality service.  Everyone in the organization, from top management to front desk officers to bellmen has to demonstrate this culture.
  • Lay-out – the managers for the boutique hotel must be able to identify its capacity depending on its goal of providing an intimate hotel experience.  A boutique hotel which has lesser rooms (about 150) can provide a more personal experience to its customers as compared to those which have more rooms.
  • Location – managers also has to decide where to situate the boutique hotel.  They may want to consider being a city destination hotel for easy access or resort destination hotel to provide the ultimate “get away” experience.  Both options have its individual advantages and disadvantages.
  • Value-Added Services – the boutique hotel must also be able to identify various value-added services, which it can offer to further distinguish it from competition.  This may include types of bed, hotel activities and dishes to feature.
  • Mass Customization – offering this type of service will additionally make a distinction among competition at the same time keeping costs at a minimum.
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  1. What can we learn from the mass customization of tangible goods (e.g., Lands' End or Dell) that can be applied to the mass customization of services (e.g., boutique hotels)?

  • In mass customization of tangible goods, the customer is highly involved more particularly in the design of the goods (e.g. Customized Bird Feeders of Case 1 – Natural Designs, Inc.).  This is also true for customization of services.  For this to be fully appreciated by the customer, he/she must be largely involved in selecting the services that suits his/her taste.  In the case of boutique hotels, ...

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